Date: Fri, 01 Feb 2008 20:33:29 -0700 From: Brett Glass <brett@lariat.net> To: jerry@syslog.org, "KAYVEN RIESE" <kayve@sfsu.edu> Cc: chat@freebsd.org, Erich Dollansky <oceanare@pacific.net.sg> Subject: Re: Microsoft buys Yahoo Message-ID: <200802020333.UAA03117@lariat.net> In-Reply-To: <4362.76.20.240.110.1201918749.squirrel@www.stelesys.com> References: <47A30E1D.4030609@pacific.net.sg> <Pine.SOC.4.64.0802011058160.26188@libra.sfsu.edu> <47A3B9A3.9080505@pacific.net.sg> <Pine.SOC.4.64.0802011755351.8976@libra.sfsu.edu> <4362.76.20.240.110.1201918749.squirrel@www.stelesys.com>
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At 07:19 PM 2/1/2008, jerry@syslog.org wrote: >I've been through many M&A deals. MS will be able to successfully argue >that the MS+Yahoo! combo does not constitute a monopoly, since: >1) the share of search of the combined companies does not equal that of >it's competitor, Google (source: >http://searchenginewatch.com/showPage.html?page=3627122) >2) The combination of MS and Yahoo! does not preclude any >search/portal/email competitor from entering the market. Anyone who thinks it doesn't constitute a monopoly hasn't looked at the typical user's browser window. Every Windows PC sold today comes with MSN as the start page and the Yahoo! toolbar (which claims to remove spyware, but spies on you itself and refuses to be removed) pre-installed. Combining the two will hold the average user, who doesn't even know how to change the browser start page and can't tell the Yahoo toolbar from the URL bar, completely hostage. >All of this assumes a few things: >1) Yahoo's shareholders believe the deal represents a good value Ironically, it's Microsoft shareholders who think it's a bad deal. Microsoft's stock dropped like a rock when the offer was announced, while Yahoo! stock went up. >2) Google doesn't start a bidding war for Yahoo that MS can't sustain >The Yahoo! BoD has a responsibility to solicit competetive offers, so who >knows? Microsoft has, what, 22 BILLION dollars in cash on hand? So, if Google were to win, it wouldn't be due to dollars. >But, assuming that MS is the suitor of choice, we will see MS and Yahoo! >minimizing their market penetration, until they are on the other side of >the close. > >I cannot see the US DoJ blocking this transaction. This administration will do whatever a big business wants, so it is highly unlikely to block ANY merger or acquisition, no matter how detrimental. --Brett Glass
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